Google misses earnings expectations
It's the first miss for the company in 2 years.
Google (GOOG) late Thursday reported net income of $1.84 billion, or $5.71 a share, a 24% increase from the $1.49 billion, or $4.66, it earned a year earlier.
Excluding items, earnings were $6.45 per share, missing expectations for $6.52. It was Google's first earnings miss since the second quarter of 2008.
Excluding revenue passed on to partner sites, sales were $5.09 billion, topping expectations for $4.98 billion.
Google's shares slumped $26.14, or 5.3%, to $467.88.
Google remains "best positioned to benefit from the recovery in ad spending and overall growth in Internet usage," FBR Capital's Heath Terry wrote in a note to clients. Terry cautioned that "spending growth, regulatory scrutiny, and growing competition on multiple fronts remain risks."
The company said its paid clicks, or the number of times that users click on its advertisements and generate revenue, rose 15% from the second quarter of 2009, flat with the first quarter. Analysts had been looking for an increase of between 15% and 17%.
The prices paid for clicks on Google's advertisements rose 4% from the same quarter last year.
Google also said it added 1,184 employees during the second quarter, its most active hiring period since the first quarter of 2008.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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